The White House is seeking to get around limits placed on both defense and nondefense spending by boosting military money through an emergency war fund that is not subject to those caps, called the Overseas Contingency Operations fund, or OCO. Both Democrats and Republicans have decried that strategy as a budget gimmick.
White House Proposes $4.7 Trillion Budget for Fiscal 2020
Trump’s outline would sharply cut spending on safety-net programs
The Trump administration proposed a $4.7 trillion budget that would sharply reduce spending on safety-net programs, while effectively exempting the Pentagon from strict spending caps set to take effect in fiscal year 2020.
The president’s plan would widen the federal budget deficit to $1.1 trillion in the next fiscal year, which begins Oct. 1, and would propose to eliminate the deficit by 2034, in part by assuming the economy grows much faster than many independent forecasters expect.
The White House budget document proposed $2.7 trillion in spending cuts over the next decade, including $1.9 trillion in cuts to mandatory spending programs, a senior administration official said Monday. The official said the president’s budget proposes more spending cuts over the next 10 years than any administration in history.
The budget would reduce the overall level of nondefense spending by 5% next year below current federal spending caps, a nearly $30 billion reduction. The budget would increase military spending by 5%, to $750 billion from $716 billion in fiscal year 2019.
.. The budget proposes to cut $22 billion from safety-net programs next year—$327 billion over the next decade—and proposes new work requirements for recipients of food stamps, Medicaid and federal housing programs, the senior administration official said.
.. The budget assumes the extension of the individual- and estate-tax cuts slated to expire at the end of 2025, and it proposes repealing some tax incentives for alternative energy, including a tax credit for plug-in electric cars.It requests $8.6 billion for new barriers along the southern U.S. border, including $5 billion for the Department of Homeland Security and $3.6 billion for the Defense Department’s military-construction budget. The president’s blueprint would also provide additional funding to boost manpower at Immigration and Customs Enforcement and Customs and Border Protection, and it proposes policy changes to end so-called sanctuary cities.The plan would also increase investments in national defense, such as artificial intelligence and hypersonic weapons, and provide more than $80 billion for veterans health care, a 10% increase from fiscal year 2019, according to the White House budget office.